1. RECAP LECTURE 7

2. CAPITAL STRUCTURE

3. RECAP LECTURE 7 SHARE FEATURES THAT AFFECT CAPITAL STRUCTURE WHAT ARE THEY?

4. RECAP LECTURE 7 1.OWNERSHIP RIGHTS 2.REPAYMENT REQUIREMENTS 3.CLAIM ON ASSETS 4.CLAIM ON PROFITS

5. RECAP LECTURE 7 WHAT ARE THE INTERNAL FACTORS THAT AFFECT CAPITAL STRUCTURE? WHAT ARE THE EXTERNAL FACTORS THAT AFFECT CAPITAL STRUCTURE?

6. A REVIEW OF FINANCIAL ACCOUNTING ACCOUNTING IS OFTEN SAID TO BE THE LANGUAGE OF BUSINESS. IT IS USED IN BUSINESS WORLD TO DESCRIBE THE TRANSACTIONS ENTERED INTO BY ALL KINDS OF ORGANIZATIONS. ACCOUNTING TERMS AND IDEAS ARE THEREFORE USED BY PEOPLE ASSOCIATED WITH BUSINESS, WHETHER THEY ARE MANAGERS, OWNERS, INVESTORS, BANKERS, LAWYERS OR ACCOUNTANTS

7. A REVIEW OF FINANCIAL ACCOUNTING FINANCIAL ACCOUNTING IS A SYSTEM OF KEEPING BUSINESS RECORDS SO AS TO EXPLAIN WHAT IS HAPPENING IN THE BUSINESS IN THIS LECTURE WE WILL REVIEW THE BASIC PRINCIPLES AND STRUCTURE OF FINANVIAL ACCOUNTING

8. A REVIEW OF FINANCIAL ACCOUNTING THE FIELD OF ACCOUNTING CAN BE DIVIDED INTO FOUR MAJOR AREAS: 1.FINANCIAL ACCOUNTING 2.MANAGEMENT / MANAGERIAL ACCOUNTING 3.COST ACCOUNTING 4.AUDITING

9. A REVIEW OF FINANCIAL ACCOUNTING FINANCIAL ACCOUNTING RECORDING TRANSACTIONS AND PREPARING REPORTS AND FINANCIAL STATEMENTS THAT CAN BE USED BY MANAGEMENT, OWNERS, CREDITORS, GOVERNMENT AGENCIES, AND OTHERS TO UNDERSTAND WHAT IS HAPPENING IN THE BUSINESS OR NON-PROFIT ORGANIZATION

10. A REVIEW OF FINANCIAL ACCOUNTING MANAGEMENT/MANAGERIAL ACCOUNTING ALSO CALLED BUDGETING, THIS INVOLVES PLANNING FOR THE FUTURE. ACCOUNTING DATA ARE PREPARED ON AN EXPECTED OR PRO FORMA BASIS, THAT IS THE FIRM IS FORECASTING BUSINESS ACTIVITY

11. A REVIEW OF FINANCIAL ACCOUNTING COST ACCOUNTING THIS AREA COVERS TECHNIQUES FOR DETERMINING THE COSTS OF A BUSINEE AND DEVELOPING METHODS FOR CONTROLLING THOSE COSTS. PARTICULAR ATTENTION IS GIVEN TO COMPUTING THE COST OF AN INDIVIDUAL PRODUCT OR SERVICE IN SITUATIONS WHERE THOUSANDS OF SUCH PRODUCTS OR SERVICES ARE SOLD

12. A REVIEW OF FINANCIAL ACCOUNTING COST ACCOUNTING EXAMPLE: TOYOTA MOTOR COMPANY WANTS TO MANUFACTURE A NEW CAR, IT MUST INCUR LARGE CAPITAL COSTS IN ADVANCE, TRAIN THOUSANDS OF WORKERS ON A NEW ASSEMBLY LINE, STOCK MILLIONS OF COMPONENTS AND PARTS AND FINALLY BEGIN PRODUCTION. WHAT DOES IT COST TO PRODUCE THE FIRST CAR? THESE QUESTIONS ARE ANSWERED IN THE AREA OF COST ACCOUNTING

13. A REVIEW OF FINANCIAL ACCOUNTING AUDITING AN AUDIT MAY BE DEFINED AS AN EXAMINATION OF ACCOUNTING OR FINANCIAL RECORDS TO DETERMINE WHETHER A COMPANY, BANK OR OTHER ORGANIZATION IS MEETING CERTAIN RULES OR STANDARDS. AUDITING IS THE FIELD THAT DEVELOPS STANDARDS FOR AUDITS AND PROVIDES THE PEOPLE TO CONDUCT AUDITS.

14. A REVIEW OF FINANCIAL ACCOUNTING AUDITING 1.INERNAL AUDITOR 2.EXTERNAL AUDITOR

15. A REVIEW OF FINANCIAL ACCOUNTING INTERNAL AUDITOR AN AUDITOR MAY WORK FOR A COMPANY AND CONDUCT AN INTERNAL AUDIT, ENSURING THAT ESTABLISHED ACCOUNTING PROCEDURES AND MANAGEMENT INSTRUCTIONS ARE BEING FOLLOWED THROUGHT A COMPANY

16. A REVIEW OF FINANCIAL ACCOUNTING EXTERNAL AUDITORS AN AUDITOR MAY WORK FOR AN OUTSIDE ACCOUNTING FIRM AND CONDUCT AN EXTERNAL AUDIT TO VERIFY ACCOUNTING AND FINANCIAL RECORDS TO CREDITORS, STOCKHOLDERS OR THE GOVERNMENT

17. A REVIEW OF FINANCIAL ACCOUNTING GENERALLY ACCEPTED ACCOUNTING PRINCIPLES GAAP WHAT IS GAAP?

18. A REVIEW OF FINANCIAL ACCOUNTING GAAP IS THE OVERALL BODY OF REGULATION ESTABLISHING HOW CAMPANY ACCOUNTS MUST BE PREPARED IN THE UK. THIS INCLUDES NOT ONLY ACCOUNTING STANDARDS BUT ALSO UK COMPANY LAW

19. A REVIEW OF FINANCIAL ACCOUNTING GAAP A PRINCIPLE IS A FUNDAMENTAL LAW OR RULE UPON WHICH OTHER RULES AND PRACTICES ARE FORMED. OVER THE YEARS, THE PROFESSION OF ACCOUNTING HAS DEVELOPED A NUMBER OF GAAP THAT MUST BE FOLLOWED IN RECORDING,TRANSACTIONS AND PREPARING FINANCIAL STATEMENTS.

20. A REVIEW OF FINANCIAL ACCOUNTING GAAP THESE PRINCIPLES HAVE BEEN ACCEPTED BY PROFESSIONAL GROUPS SUCH AS AMERCIAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA), ASSOCIATION OF CHARTERED CERTIFIED ACCOUNTANTS (ACCA) INSTITUTE OF CHARTERED ACCOUNTANTS ENGLAND & WALES (ICAEW), INSTITUTE OF CHARTERED ACCOUNTANTS PAKISTAN (ICAP)

21. A REVIEW OF FINANCIAL ACCOUNTING SOME OF THE MOST IMPORTANT OF THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOLLOW: 1.BUSINESS ENTITY 2.GOING CONCERM 3.CONSISTENCY 4.MATERIALITY 5.PRUDENCE